Life insurance isn’t always the most colorful thing to think about. For starters, it can be a complicated issue, and there are a lot of pieces to the life insurance puzzle. Secondly, many young people, which we’ll define as people under 50 years old, don’t even give life insurance a second thought. A lot of us think we should only consider purchasing life insurance when we become older. However, if you’re under 50, having life insurance can pay off.
Not all life insurance is created equal, so it’s important to know what types of life insurance will suit your specific needs. It may not be beneficial for a 25-year-old to have the same life insurance as a 75-year-old. Here at The Slocum Agency, Inc.in Warwick, RI, we want to help you explore the best options. Let’s take a look at some of the best life insurance policies for people under 50.
- Permanent Life Insurance – Permanent life insurance offers more than just a death benefit that all other life insurance policies offer. Permanent life insurance offers the potential for an incredibly high cash value. This is achieved by the cash value on these policies accumulating over time. The advantage younger people have with this kind of policy is that they have more time to let the value accumulate than older people.
- Term Life Insurance – Term life insurance only provides coverage for a set amount of time or term. Term life insurance pays a death benefit to your beneficiaries if you die before the term. Most term life insurance policies typically only cover a range of 10-30 years, so this may not be the most suitable for someone in their 20’s or 30’s. However, the biggest attraction younger people have to term life insurance is the lower premiums, and when you’re just starting out, lower insurance costs can go a long way.
We here at The Slocum Agency, Inc. in Warwick, RI hope this was helpful as you plan your journey into the world of life insurance. Remember that just because you’re young doesn’t mean you should overlook the benefits of life insurance. Because there are so many options you’ll want to make sure you pick the right kind of coverage that fits your needs and circumstance.